May. 15 at 3:47 PM
BoA reiterates Buy rating on
$TSM & keeps TP of TW
$2560
Cite: "recent concerns are overdone" as TSMC’s scale and technological lead in advanced nodes continue to widen the gap with rivals
On the 3nm & 5nm nodes, TSMC is targeting +25% compound annual capacity growth from 2022 to 2027, w/ 3nm capacity expected to reach 190,000 wafers per month by 4Q26, rising to 230,000 by 2027
BofA ests that Samsung’s SF3 & Intel’s 18A processes at just 20,000 to 25,000 wafers per month at low yields prioritized for internal use, significantly limiting the risk that Apple shifts its M-series chipsets away from TSMC
Next-gen N2 node is targeted at +70% compound annual capacity growth from 2026 to 2028, rolling out 5 fab facilities simultaneously & cutting tech transfer times by -20%. Notably, N2 reached targeted defect density levels 2 quarters ahead of the schedule set by the 3nm ramp.
On advanced packaging, TSMC is growing CoWoS & SoIC capacity at +80% & +90% compound annual rates, respectively, through 2027.
